BWO - Summary 3Q - 2006

Bergesen Worldwide Offshore Ltd (BWO) reports EBITDA of USD 19.0 million, EBIT of USD 10.7 million and net profit of USD 11.1 million for the third quarter 2006. The quarterly operating result reflects increased activity and a full quarter for all operating units. The company is on track with its projects and its general development.

The BW Enterprise conversion is within budget and on schedule. Capital expenditures (contract costs) in third quarter were USD 70.8 mill. The FPSO is, as planned, expected to leave the conversion yard in Singapore by the end of 2006. In 2Q the BW Enterprise contract was re-stated as a financial lease contract, in which the FPSO will be delivered to the customer in April 2007. Project costs are recognized in profit and loss according to IAS 11 (Construction contracts). Revenue related to the contract is recognized only tothe extent of contract costs incurred.

Investments in third quarter 2006 amounted to USD 3.0 million, which relate to BW Endeavour and BW FPSO LPG 1 (BW Enterprise not included, ref bullet point above). Total assets as at 30 September 2006 amounted to USD 840.7 million.

In May the Company accepted a fully committed underwritten offer for a USD 500 million unsecured reducing revolving loan facility. The facility was later increased to USD 600 million. USD 400 million was drawn from this facility in July to refinance the outstanding debt to BW Limited. The facility has a grace period until 2011 in which the facility will be reduced from USD 600 million to USD 400 million.

In June the Company signed a Letter of Intent with Peak Petroleum Industries and Equator Exploration in which the purpose is to negotiate an agreement for the FPSO BW Endeavour at the Bilabri Field, Nigeria. The firm contract was signed at 16 October 2006, in which the terms of the contract are a firm period of 3 years with an additional option to extend the contract up to a total of 10 years. The hire rate will consist of a fixed day rate plus a production incentive rate

The Group entered into a lease agreement for main office premises in June 2006, valid for a period up to 11 years as from December 2006. The new premises will increase the flexibility in our organisation and contribute to a more efficient working environment. The Group will be situated at the new offices as from 18 December 2006. Only minor expenses related to the moving process are recorded in the income statement in the third quarter

The full Summary Q3 - 2006 including tables can be downloaded from the following link: